Gold prices rallied today as safe haven demand strengthened amid the civil war in Libya and concerns over Europe’s debt crisis.
Moody’s today further cuts Portugal’s sovereign rating by one notch from A3 to Baa1, while indicating that further downgrades are possible. This is the credit rating agency’s second downgrade of Portugal in three weeks.
The civil war in Libya keeps driving up oil prices with Brent crude having topped US$120/lb in London, boosting gold’s appeal as an inflation hedge.
Gold last traded at US$1,442/oz.
Silver and platinum surged to US$38.75/oz and US$1,791/oz respectively.
Major mining stocks weren’t very active today.
African Barrick Gold (LON:ABG) declined 1%, while Fresnillo (LON:FRES) and Lonmin (LON:LMI) declined marginally.
Hochschild Mining (LON:HOC) and Petropavlovsk (LON:POG) shed 1.5% and 1% respectively.
Oxus Gold (LON:OXS), the only publicly listed gold mining company with primary operations inside the Republic of Uzbekistan, was among the top risers in the sector, soaring 17%.
African Aura Mining (LON:AAAM), which is focused on gold and iron-ore deposits in sub-Saharan Africa, and copper and gold explorer EMED Mining (LON:EMED) surged 6.5% and 5.5% respectively.